BlueScope Steel said Monday it is weighing a sweeping takeover approach that could reshape its global footprint, confirming it is reviewing a 13.2 billion Australian dollar ($8.8 billion) proposal led by SGH Ltd. alongside U.S.-based Steel Dynamics Inc.
The Australian steelmaker said it is working closely with Herbert Smith Freehills Kramer LLP as it examines the unsolicited offer, which landed just before the year-end holiday lull but has already sent ripples through the steel sector.
Details of the Unsolicited Offer
BlueScope disclosed that it received a nonbinding, unsolicited proposal on Dec. 12 from an Australian-U.S. consortium to acquire all outstanding BlueScope shares for AU$30 in cash per share, structured through a scheme of arrangement.
Under the plan, SGH would acquire full ownership of BlueScope, before divesting the company’s North American operations to Steel Dynamics, effectively splitting the business along geographic lines.
Conditions Attached to the Deal
The steelmaker emphasized that the proposal comes with a long list of conditions. These include:
